Question

How is the money collected from small investors in mutual funds utilized by the mutual fund trust?

a.

It is distributed among unit-holders as guaranteed returns

b.

It is invested in a single type of security for maximum returns

c.

It is invested in different securities based on the fund's objectives

d.

It is kept in fixed deposits for safety

Posted under IC 89 Management Accounting

Answer: (c).It is invested in different securities based on the fund's objectives Explanation:The money collected is invested in different securities based on the objectives of the mutual fund.

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Q. How is the money collected from small investors in mutual funds utilized by the mutual fund trust?
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